For busy women it can be easy to forget about pensions or retirement planning.
On average women live almost four years longer than men* so it is more important than ever that they think about retirement planning early as their pension is likely to need to last longer than men’s.
A pension can provide women with financial security for the future.
Women are typically behind men when it comes to retirement planning and saving into a pension. This is often due to taking a career break or reducing hours when they start a family or if they have to provide care for relatives.
It’s never too late for women to start planning their retirement
If you are a woman who is nearing retirement, you might realise that your retirement pot is smaller than you need it to be or you might not have any retirement plans in place at all.
It is vital to prepare as soon as possible as the longer that you can leave your investment in your pension, the more time they will have to potentially grow.
Pension options
There are many different ways that women can save for their retirement. If you are unsure which pension option is right for you or which investments are suitable, it could be invaluable for you to speak to a financial adviser.
At Four Wealth Management, we offer a no-obligation meeting with one of our financial advisers who can recommend a pension that is suitable for your aims and goals. They will also create a bespoke portfolio of investments for you to help you potentially reach your goals quicker. You will have peace of mind knowing that your retirement is in safe hands as your financial adviser will review your pension each year and make any necessary changes to keep you on track.
Find out more about retirement planning
How much do women need to save for their retirement?
Typically, at retirement, you will need approximately two-thirds of your annual pre-retirement income each year. Your outgoings are likely to be less at retirement and large expenses such as your house or car are likely to have already been paid off.
Your pension pot is likely to need to last 20-30 years or more so you will still need a substantial amount saved into your pension to give you a comfortable retirement.
A financial adviser at Four Wealth Management can help you work out how much to save per month to reach your retirement goals.
Book a no-obligation meeting now
Even if you cannot afford to put in a lump sum, you can start your pension by saving a small amount per month and then increase this when you are able to.
Don’t forget the State Pension
It is important to remember that as well as your personal pension savings, you will still qualify for the State Pension on top of this. This can be used as part of your retirement meaning that you might need less than you thought in your personal pension pot.
The State Pension is based on your previous National Insurance contributions. You can get up to £203.85 per week once you reach state pension age (in the 2023/24 tax year).
Start your retirement planning today
Don’t delay any further, the quicker you make a start on planning your retirement, the more time your pension has to potentially grow which will give you more flexibility and options when you come to retire.
Book a no-obligation meeting about your retirement planning now
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
*ONS, ‘Mortality in England and Wales’, 2022
